India and the United States released a joint statement outlining a framework for an interim trade agreement designed to deepen bilateral economic ties and expand Indian exports across priority sectors.
Commerce and Industry Minister Piyush Goyal said the framework, negotiated under Prime Minister Narendra Modi’s leadership, would give Indian exporters greater access to the roughly $30 trillion U.S. market. The deal is expected to particularly benefit micro, small and medium enterprises (MSMEs), farmers and fishers.
Goyal said the expected export growth would generate lakhs of new jobs, with significant opportunities for women and youth.
Under the framework, reciprocal U.S. tariffs on many Indian goods would be reduced to 18 percent, opening new prospects in textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal goods and certain machinery.
A broad range of products would see tariffs reduced to zero, including generic pharmaceuticals, gems and diamonds, and aircraft parts—moves aimed at boosting India’s export competitiveness and supporting the Make in India initiative.
The agreement also includes specific measures such as exemptions under Section 232 for aircraft parts, tariff-rate quotas on auto parts, and negotiated outcomes for generic medicines, all intended to translate into concrete export gains.
At the same time, the framework protects sensitive agricultural and dairy sectors. Items such as maize, wheat, rice, soy, poultry, milk, cheese, fuel ethanol, tobacco, selected vegetables and meat will remain fully protected to safeguard farmers’ incomes and rural livelihoods.
Goyal said the pact reflects a shared commitment by India and the U.S. to deepen economic cooperation and pursue sustainable growth that benefits businesses and communities in both countries.
